Congressman García Passes Bipartisan Legislation to Repeal OCC Rule that Undermines Consumer Protection Laws
WASHINGTON, D.C. -- Today the House of Representatives approved S.J.Res. 15, the Senate companion of a resolution sponsored by Congressman Jesús “Chuy'' García (IL-04), a member of the House Financial Services Committee, to repeal the so-called “True Lender” rule issued by the Office of the Comptroller of the Currency (OCC), by a bipartisan vote of 218-208. This Trump-era rule allows predatory lenders to partner with banks in “rent-a-bank” schemes to undermine state laws that protect consumers from high interest loans. The resolution passed the Senate in May and will now go to the President’s desk.
Congressman García issued the following statement:
“Predatory lenders trap working class communities like mine in cycles of debt they can’t repay, and the OCC’s so-called ‘True Lender’ rule helps them get around state laws designed to protect borrowers. Repealing this rule empowers states to protect their residents from debt traps and recognizes the broad support these consumer protections have across the country.
“Trump’s ‘True Lender’ rule enables predatory lenders to evade consumer protection laws like those in Illinois and more than a dozen other states. By simply stamping a bank’s name on paperwork despite having no financial stake or skin in the game -- in what is called a “rent-a-bank scheme” -- predatory lenders make record profits by trapping working people in debt.
“The economic uncertainty caused by the COVID-19 pandemic left Black and Latino constituents in my district especially vulnerable to high-interest loans, but this issue affects consumers across the country. Last year 82% of voters in Nebraska approved an interest rate cap, joining states like Arkansas and South Dakota. Repealing the ‘True Lender’ Rule will protect working class people across the United States and respect the will of the voters.
“I’m proud to see this resolution pass in the House of Representatives and look forward to President Biden signing it into law.”